HK Stock Market Move | Yue Yuen Industries (00551) rises by over 3% again, with strong performance in the third quarter. UBS pointed out its positive order outlook.

YUE YUEN IND(00551) rose by over 3%, reaching 2.56% at press time, at 16.82 Hong Kong dollars, with a turnover of 264.985 million Hong Kong dollars. On the news front, YUE YUEN IND recently released its performance for the nine months ending September 30, 2024. The group achieved operating income of 6.075 billion US dollars, an increase of 1.48% year-on-year; the group's net profit attributable to owners was 332 million US dollars, an increase of 140.9% year-on-year. The announcement stated that operating income from shoe manufacturing activities (including sports/outdoor shoes, casual shoes, and sports sandals) increased by 8.2% year-on-year to 3.783 billion US dollars. Management once again raised the full-year shipment volume guidance to 16%. UBS released a research report stating that YUE YUEN IND's revenue for the first nine months of this year increased by 1% year-on-year to 6.075 billion US dollars; net profit attributable to owners increased by 141% year-on-year to 332 million US dollars, consistent with the previously announced profit increase of 140% to 145%. This indicates that YUE YUEN IND's performance in the third quarter was strong, with revenue and net profit increasing by 12% and 172% year-on-year, respectively, to 2.06 billion US dollars and 147 million US dollars. The bank continued to point out that considering the large proportion of online sales during major promotions, YUE YUEN IND is expected to face greater discount risks in the fourth quarter, and management is preparing to clear inventory for the launch of new products next year. However, their outlook on orders is positive.